New cap-and-trade costs are included on this bill.

The Ontario government’s cap-and-trade program took effect on Jan. 1, 2017.

Under this new legislation, Union Gas must buy emission allowances for the natural gas you use. These costs will be recovered on your gas bill.

Cap-and-trade costs are added to the Delivery charge on your natural gas bill.

Emission allowances are expected to cost about 3.3 cents per cubic meter (m3) of gas you use in 2017. If the price of emission allowances changes, the charge on your bill will be adjusted accordingly, as it is for other annual rate changes.

The total added cost to your business will depend on the amount of natural gas you use. You can lessen the impact on your bill by taking advantage of efficiency incentives at uniongas.com/savemoneyandenergy.

You can estimate the approximate cost of cap and trade on your bill using the calculator found at uniongas.com/capandtrade.

The Ontario Energy Board (OEB) approves cap-and-trade costs before they are included on your bill.

Union Gas rates and rate zones have changed.

North American natural gas markets are changing, with increased production in areas closer to Ontario, as production in Western Canada declines.

Union Gas is purchasing more gas located closer to Ontario and less from Western Canada. The Ontario Energy Board (OEB) has approved rates and rate zone changes, which took effect Jan. 1, 2017, to better reflect the costs of buying and transporting natural gas to our customers.

Rate changes vary depending on where your business is located. Your rate zone is indicated on the rate insert included with this month’s bill.

What you need to know:

Union Gas buys natural gas from North American markets and pays other pipeline companies to transport it from where it’s produced to our distribution system in Ontario.

Your bill reflects the actual cost for natural gas and transportation services, without mark-up. You pay what we pay.

As always, the OEB reviews and approves our gas rates before they take effect, ensuring that the cost to you is fair and reasonable.